The Impact of Minimum Wages on Wage Inequality and Employment in the Formal and Informal Sector in Costa Rica



William Davidson Institute Working Paper 479

Table 6:

Impact of Changes in the Toughness of the
Minimum Wage on Hours Worked

Range of Toughness Measure

Increase in Hours

Lowest

Median

Highest

of Work of

(30.0)

(55.5)

(89.0)

Covered Sector

0.0037

0.00141

-0.0016

Self-employed

0.0121

0.00343

-0.0080

Table 7: Impact of Minimum Wages on the Relative Level of
Employment in the Covered Sector (Percent Covered)

(1)

(2)

(3)

Toughness

0.019 *

0.0018

0.0018

(0.012)

(0.0035)

(0.0037)

(Toughness)2

3.40e-07

5.89e-06

(0.000025)

(0.00003)

Lag toughness

0.0029b

(0.0012)

Time Dummies

yes

yes

yes

Industry Dummies

yes

yes

yes

Constant

4.32 a

4.33 a

4.25a

(0.06)

(0.12)

(0.12)

Adjusted R2

019

0.89

0.90

*P=0.113

aSignificant at the 1% level; bsignificant at the 5% level;

csignificant at the 10% level.

16



More intriguing information

1. Are Japanese bureaucrats politically stronger than farmers?: The political economy of Japan's rice set-aside program
2. The Social Context as a Determinant of Teacher Motivational Strategies in Physical Education
3. Mergers and the changing landscape of commercial banking (Part II)
4. The Making of Cultural Policy: A European Perspective
5. The Importance of Global Shocks for National Policymakers: Rising Challenges for Central Banks
6. The name is absent
7. Ventas callejeras y espacio público: efectos sobre el comercio de Bogotá
8. How do investors' expectations drive asset prices?
9. Fiscal federalism and Fiscal Autonomy: Lessons for the UK from other Industrialised Countries
10. Spatial Aggregation and Weather Risk Management
11. Spatial patterns in intermunicipal Danish commuting
12. Shifting Identities and Blurring Boundaries: The Emergence of Third Space Professionals in UK Higher Education
13. European Integration: Some stylised facts
14. The name is absent
15. Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)
16. DURABLE CONSUMPTION AS A STATUS GOOD: A STUDY OF NEOCLASSICAL CASES
17. Outline of a new approach to the nature of mind
18. The name is absent
19. A COMPARATIVE STUDY OF ALTERNATIVE ECONOMETRIC PACKAGES: AN APPLICATION TO ITALIAN DEPOSIT INTEREST RATES
20. Legal Minimum Wages and the Wages of Formal and Informal Sector Workers in Costa Rica